Financial Performance - Net sales for the three months ended July 31, 2021, were $39,493,000, an increase of 8.5% compared to $36,423,000 for the same period in 2020[10] - Gross profit for the same period was $5,674,000, a decrease of 3.5% from $5,881,000 in 2020[10] - The net loss attributable to Kewaunee Scientific Corporation for the three months ended July 31, 2021, was $1,345,000, compared to a net loss of $598,000 in 2020, representing a 125% increase in loss[10] - Basic and diluted net loss per share attributable to Kewaunee Scientific Corporation stockholders was $(0.48) for the three months ended July 31, 2021, compared to $(0.22) in 2020[10] - The company reported a comprehensive loss attributable to Kewaunee Scientific Corporation of $1,421,000 for the three months ended July 31, 2021, compared to a comprehensive loss of $611,000 in 2020[14] - Operating loss for the three months ended July 31, 2021, was $(1,091,000), compared to $(276,000) in the same period of 2020, reflecting a significant increase in operating losses[10] - Total revenues for the quarter were $39,493,000, an 8.4% increase from $36,423,000 in the prior year[58] - Net loss for the quarter was $1,345,000, or $(0.48) per diluted share, compared to a net loss of $598,000, or $(0.22) per diluted share in the prior year[65] Assets and Liabilities - Total current assets increased to $61,969,000 as of July 31, 2021, from $60,457,000 as of April 30, 2021, reflecting a growth of 2.5%[20] - Total assets as of July 31, 2021, were $90,299,000, up from $89,384,000 as of April 30, 2021, indicating a 1% increase[20] - Total liabilities increased to $49,959,000 as of July 31, 2021, compared to $47,897,000 as of April 30, 2021, marking a 4.3% rise[20] - Cash, cash equivalents, and restricted cash at the end of the period were $5,467,000, a decrease from $5,731,000 at the beginning of the period[22] - The company had outstanding advances of $8.9 million under its revolving credit facility as of July 31, 2021, an increase from $6.8 million at April 30, 2021[38] Revenue Breakdown - Domestic revenue for the three months ended July 31, 2021, was $29,663,000, compared to $30,058,000 in 2020, indicating a decline of about 1.3%[33] - International revenue for the three months ended July 31, 2021, was $9,830,000, up from $6,365,000 in 2020, reflecting a significant increase of approximately 54.5%[33] - Domestic sales decreased by 1.3% to $29,663,000, while international sales increased by 54.4% to $9,830,000[58] Inventory and Contract Assets - Total inventory as of July 31, 2021, was $17,852,000, an increase from $16,517,000 at April 30, 2021, representing a growth of approximately 8.1%[35] - Contract assets increased to $8,677,000 at July 31, 2021, from $6,929,000 at April 30, 2021, while contract liabilities decreased to $2,555,000 from $3,123,000 in the same period[34] - The company expects to recognize approximately 100% of the contract liability balances as revenue during the succeeding 12 months from both April 30, 2021, and July 31, 2021[34] Operating Expenses and Tax - Operating expenses increased to $6,765,000, or 17.1% of sales, compared to $6,157,000, or 16.9% of sales in the prior year[61] - Income tax expense for the three months ended July 31, 2021, was $251,000, significantly higher than $21,000 for the same period in 2020, resulting in an effective tax rate of (23.8)% compared to (3.6)%[48] - The effective income tax rate for the quarter was (23.8)%, compared to (3.6)% in the prior year, reflecting increased international operations[63] Future Outlook - The company anticipates project awards will accelerate as the economy reopens, despite short-term impacts from rising raw material prices[73] - The company plans to implement surcharges on new orders to offset broad-based price increases for materials[73] Stock-Based Compensation - The company recorded stock-based compensation expense of $194,000 for the three months ended July 31, 2021, compared to $59,000 for the same period in 2020, indicating an increase of approximately 228.8%[46] Order Backlog - The order backlog was $120.6 million at July 31, 2021, up from $101.2 million at July 31, 2020[59] Gross Profit Margin - Gross profit margin for the quarter was 14.4%, down from 16.1% in the prior year, due to increased raw material costs[60] Cash Flow - The company used cash of $1,776,000 in operations during the quarter, primarily due to increases in receivables and inventory[69]
Kewaunee Scientific (KEQU) - 2022 Q1 - Quarterly Report